Puerto Rico Electric Power Authority (PREPA) has agreed with NFEnergía, the local New Fortress Energy affiliate, to supply LNG and convert Units 5&6 of the San Juan power plant. The diesel-to-gas conversion of these two combined-cycle power units is expected to generate about $750 million in fuel cost savings.
Striving to achieve universal electricity access, utilities invested $500 million globally in off-grid energy access last year. Though investments in energy access grew another 22% in 2018, after surging 37% the year before, Wood Mackenzie says “total volumes still fall well short of the estimated financing needed to reach universal electricity access globally by 2030.”
Manila Electric Co. (Meralco) has filed to Energy Regulatory Commission (ERC) of the Philippines, requesting to end interim power supply agreements prior to the next Malampaya gas field maintenance – but the regulator wants utilities to keep producing electricity from condensate. The upcoming October shutdown will affect gas supply to three of Luzon’s major power plants: Santa Rita (1,000 MW), San Lorenzo (500 MW) and Ilijan (1,200 MW).
As Japanese utilities keep restarting shuttered nuclear power units, analysts say the return of cheap nuclear power will displace baseload generation from fossil sources, in particular natural gas. Japan has to import its entire gas demand as LNG, which is more costly than thermal coal, so a rise in nuclear power output is forecast to reduce LNG shipments by up to 10% this year.
Norway’s Golar LNG has started to unload the first commissioning cargo at its Golar Nanook FSRU (floating storage and regas unit) offshore Sergipe, northeastern Brazil. The supply is designated for the Porto de Sergipe-I Power Project, a 1.5GW combined-cycle gas power plant, developed by Golar in a joint venture with Stonepeak Infrastructure Partners.
U.S. major ExxonMobil, together with Qatar Petroleum, has made a gas discovery of 5-8 trillion cubic feet (Tcf) its Glaucus-1 well off Cyprus. The find adds another giant discovery to the East Mediterranean but a lack of subsea pipelines hamper the use of this gas in the local power sector, so Exxon considers teaming up with other majors to monetize the find through a new LNG venture.
Electric load at the MISO grid in the Midwest of the United States was pushed to its limits during the recent period of extreme cold weather in late January. According to EIA figure, day-ahead gas spot prices reached $7.42/MMBtu) at Chicago, the main hub in the region, while MISO day-ahead electricity prices surged to $120/MWh.
Enagas, the Spanish gas network and LNG terminal operator, has announced construction of the Trans Adriatic Pipeline (TAP) - part of Europe’s Southern Gas Corridor - is 85% complete. Enagas saw a 1% rise in its 2018 annual profit to 442.6 million Euros amid a 4.5% increase in conventional gas demand.
Spanish-owned Scottish Power has unveiled its “biggest ever investment in the UK in a single year," announcing to splash out £2 billion on green energy in 2019. Programmes include building giant batteries to store excess energy at wind farms, investing in smart grids for customers to buy and sell electricity, and charging points for electric cars.
U.S. engineering company McDermott International has posted a fourth-quarter loss, largely due to $2.2 billion in charges related to works on Cameron LNG and Freeport LNG and higher construction costs for Calpine’s York 2 Energy Center. The Houston-based McDermott today reported a net fourth quarter loss of $2.8 billion – a stark contrast to its $26 million profit in Q4-2017.
Natural gas will become the fastest-growing energy source in the coming decade, displacing coal as a fuel for power plants and heavy industries, Royal Dutch Shell said in its 2019 LNG Outlook 2019. Global energy demand is seen grow 18% by 2035, spurred by clean-air policies in China and India, with gas set to meet 40% of that largely through expanding LNG trade.
Economic growth, combined with a rapidly expanding population, has led to an investment boost in the Indonesian power sector which is forecast to quadruple in size over the coming decade, growing at a 18.7% rate to reach $63.6 billion in market value by 2022. Coal-fired power will retain its leading position while decentralized LNG-fuelled projects also gain attractiveness.
Reciprocating internal combustion engines – typically used for backup, standby, or emergency power – are playing a fast advancing role in utility-scale power generation applications, according to EIA findings. In Texas alone, the share of gas-fired recip engines surged 20% to over 4,600 MW largely as a reaction to the state’s rapid growth in installed wind power capacity.
The Japanese energy majors JERA and Tepco Power Grid have agreed to jointly invest up to $32.68 billion (£25 million) in Zenobe Energy, a UK-based battery storage company. Zenobe owns and operates some 73 MW of batteries and is currently looking to use its technology in related business areas, notably the charging of electric vehicles.